Islamabad reports that Pakistan’s government has set an economic growth target of 4 percent for FY2026–27, following a recorded GDP growth of 3.7 percent in FY2025–26, slightly below last year’s target.

The macroeconomic framework has been approved by the Annual Plan Coordination Committee and is now awaiting formal approval from the National Economic Council (NEC) on June 3.The commodity-producing sectors are expected to grow by 3.9 percent, with agriculture expanding by 3.8 percent and large-scale manufacturing showing 4.5 percent growth.

Industrial growth is projected at 4 percent due to improvements in manufacturing, mining, construction, and energy sectors, while the services sector is expected to grow at 4.2 percent, driven by trade, transport, finance, and IT.National savings are projected at 14.3 percent of GDP with investment at 15 percent, narrowing the savings-investment gap with modest external financing.Inflation has been targeted at 8.2 percent, assuming stable macroeconomic management and fiscal consolidation.

Employment is expected to rise by 2 million, mainly through private investment encouraged by public investment and ongoing employment generation programmes.

The Planning Commission highlighted that despite challenges like flash floods and global oil price shocks, the economy stabilised in FY2025–26, showing improvement in large-scale manufacturing, remittances, foreign exchange reserves, and investor confidence.